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Abundantly

Champion Employees. Lift the world. Read more

Bonusly

High Performing Cultures Thrive with Bonusly Read more

Bucketlist

Retain your talent with highly personalized recognitions and rewards. Read more

Certopus

Issue digital badges and certificates with ease Read more

Cooleaf

Recognize and empower the everyday hero in your employees. Read more

Giftbit

Send and track digital gift cards, prepaid credit cards, and charitable options, to reward and incentivize. Read more

Guusto

Build a culture your frontline workers love. Read more

Kudoboard

Empower your people & teams to celebrate the moments that matter. Get started today! Read more

Motivosity

Good companies give rewards. Great companies don’t stop there. Read more

Nectar

Create a culture people won't want to leave. Recognize great work, increase engagement, promote core values, and redeem rewards ─ all in one simple employee recognition platform. Read more

Qarrot

Seamless Recognition for Better Engagement and Connection Reward and engage your team with an easy-to-use platform that helps strengthen culture and drive better performance. Read more

Reviewr

At last, a dedicated tool to collect, manage, and review a wide variety of submissions such as nominations, scholarships, grants, fellowships, and more. Read more

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Employee Recognition Software Complete Buyer's Guide

Companies that aim to build a solid and rewarding work culture often face issues in employee recognition that need to be addressed in a timely manner. That is why it is important to implement the right employee recognition tool for your business to help your HR department keep track of employee accomplishments and reward them accordingly. In this guide we include everything you need to know about employee recognition software and how to choose one for your organization.

What Is Employee Recognition Software?

First off, it is vital to define employee recognition software. Employee recognition tools are systems designed to help organizations acknowledge and reward their employees' achievements effectively and accurately. Their features can have various forms, such as peer-to-peer commendations, employee awards, and company-wide recognition. Also, they incorporate automated reminders, customizable reward options, and analytics to track and measure the impact of recognition programs, as we will mention below.

Their end goal is to streamline the reward process so that employee recognition enhances engagement, boosts morale, and builds a positive work environment. Eventually, this will increase retention rates and improve productivity.

Basic Features Of An Employee Recognition Platform

There are many differences between employee recognition systems in the market. In this section, we explore their majority.

Employee Reward Programs

Employee recognition systems with reward programs offer an efficient method to reward employees for their accomplishments. The rewards can take many forms, depending on company values. They can vary from days off to restaurant tickets, gift cards, or even monetary bonuses. Meanwhile, these programs track accomplishments to ensure reward accuracy. Ultimately, employee reward programs boost satisfaction and engagement, leading to a healthy work environment.

Peer-To-Peer Recognition

There is nothing more motivating in a collaborative environment than employees recognizing other employees. Employee recognition tools with peer-to-peer recognition allow staff to engage directly in the reward process. Specifically, it can simply be in the form of employee appraisal to show mutual respect and appreciation. This feature makes the recognition process accessible and transparent to everyone in the organization, reminding employees that they are included. Eventually, this enhances inclusivity, productivity, and engagement in the workplace.

Manager-To-Employee Recognition

Being recognized by the management team will encourage employees to be the best versions of themselves. Employee recognition tools with manager-to-employee recognition allow managers to recognize employees directly for their contributions and reward them properly. This helps create a trusting bond between management and staff, which can benefit many other aspects of the company besides HR.

Rewards Management

This feature is like a reward control panel. It allows HR and management to automate, customize, and track the reward process. In detail, it contains all the available information to ensure that rewarding is accurate, fair, fast, transparent, and efficient. Employee recognition systems with rewards management are ideal for HR departments in companies with a large employee base. The automated and streamlined process can take the burden off their hands while not reducing the effectiveness of recognition.

Nominations

Some of the software in the market also includes a nomination feature in their reward system. As the name suggests, employee recognition tools with nominations allow management to nominate certain employees for specific awards. This feature boosts transparency in the recognition process while building anticipation and clearing the fog around the reasons why certain employees get nominated. With nominations, companies can foster a just reward system and collaborative working culture within the organization.

Recognition Tracking

Every employee wants to see their efforts rewarded; it is a deciding factor for motivation and productivity. For this to happen, though, management and HR teams need solid data. Employee recognition software with recognition tracking offers the solution since it enables management to track the entire process and acquire valuable information. For example, management can see who is recognized, for what, and how often. HR can then reward employees accordingly and enhance the impact of recognition.

Activity Dashboard

This feature is connected to recognition tracking. To be precise, employee recognition tools with an activity dashboard allow an interactive overview of all activities related to recognition. By centralizing this information in one place, managers and HR can easily track and analyze the recognition process and increase its accuracy. Moreover, it makes the process less time-consuming and allows them to focus on other activities. From the employee's perspective, the activity dashboard also provides them with a complete overview of their current performance.

Feedback Management

Feedback is valuable in every situation. Especially in the recognition process, valid feedback can ensure accuracy and make the process more democratic. Employee recognition platforms with feedback management embrace this idea of valid feedback, allowing management and HR to access and analyze the feedback provided by other employees. Feedback management additionally helps improve the organization as a whole, as encouraging employees to give feedback can drive continuous improvement within the company and lead to its success.

Reporting/Analytics

There is always room for improvement in a company's processes. This applies to employee recognition, as well. However, to spot errors or areas for improvement, you need the right reporting. Employee recognition tools with reporting/analytics come to the rescue by providing managers the ability to access valuable data and create reports. The data is collected through recognition-based employee activities and allows managers to improve recognition and create a fair working environment.

Employee Database

Data can always tell the right story. It is the only way to fine-tune processes within the organization. That is why there are so many employee recognition tools with employee databases out there. These serve as a centralized repository for storing valuable employee information, including department, role, work anniversary, title, and many more necessary details for appropriate employee recognition. The data stored in the database improves reporting accuracy, although HR and management should check the data prior to recognition to ensure its quality. In general, a well-established employee database can improve the recognition processes and skyrocket employee satisfaction.

eCards

One of the most common yet effective recognition methods is eCards. eCards show management's appreciation for a top-performing employee. Employee recognition platforms with eCards even provide the opportunity to customize the cards to fit the employee's personality, and they can be used to celebrate work anniversaries, awards, or successful onboarding.

Data Import/Export

There can be no reliable reporting without the right data. In employee recognition, data is collected, although this sometimes might not be enough. This is where employee recognition tools with data import/export come in, which allow managers to import data from other tools or export it for other uses. Not only does this help improve the recognition process, but it can also boost other organizational areas.

Customizable Reports

Every company has different needs, goals, and expectations. Hence, for it to achieve maximum efficiency, reporting needs to be customized. That is why many employee recognition programs with customizable reports are highly in demand. Customizable reports allow HR professionals to tailor the reports to the company's needs. This makes reporting easier and more accurate since it focuses solely on the organization's specific needs. Especially in large enterprises where reporting is frequent, customization helps improve the efficiency of the reporting process.

Alerts/Notifications

Nowadays, people use more and more mobile devices at work and beyond. It is essential that companies keep employees up to date with the recognition process at all times. To that end, employee recognition tools with alerts/notifications ensure that both employees and managers know the current status of recognition activities anytime and anywhere. Alerts can take several forms, like emails or app notifications if the software is mobile.

The Benefits Of Using Employee Recognition Software

Recognizing your workforce's efforts can have a major impact on your company's success. To help you achieve that goal, employee recognition software comes in handy with the benefits below.

Enhanced Appreciation Recognition

A bonus or compensation is always a welcome reward. Is it enough, though? One of the major benefits of using employee recognition software is enhanced appreciation. These platforms offer numerous ways to celebrate an achievement and show your appreciation for an employee's efforts. Enhanced appreciation means offering a more emotional reward and is valued since it increases employee morale and motivation. Ultimately, it improves employee retention and productivity in your company.

Rewarding Employees

Rewarding your employees is an absolute necessity if you want to maintain a healthy company culture. An employee recognition program makes this process as easy as can be. With all the features included, you can have an appreciation hub with all the available information to make the process accurate and fair. Such tools ensure that recognition and rewards are consistent, personal, and timely. What is more, some platforms offer creative ideas for rewarding your valued employees.

Peer Recognition Made Easy

Peer recognition can miss the mark if not centralized. We have already stated the importance of peer appreciation in the workplace: employees rewarding employees can foster a collaborative work environment that can benefit the entire company. With that goal, employee recognition tools offer the opportunity for employees to easily access the platform and use all the available information and features to recognize their colleagues.

Helpful Integrations

Nowadays, companies use multiple platforms for their operations. Therefore, it is important that the employee recognition tool is integrated with the rest of the tool base. This makes things easy by allowing flawless exchange of information between tools.

What Is Employee Recognition Software Used For?

There are three main uses of employee recognition software, explained below.

Improving Team Recognition

In a company that consists of multiple teams, it is essential to introduce a team recognition scheme. The main difference between team and individual appreciation is the amount of data required to reach an accurate result. In this case, employee recognition software is used to centralize information on team activities, track recognition, and reward the team in various ways.

Providing Colleague Recognition

As mentioned above, peer recognition is among the top features of employee recognition platforms. Peer recognition fosters a healthy collaborative working environment in which employees are praised by their coworkers, who are often the best judges of their efforts.

Rewarding Employees

Rewards greatly increase workforce morale, satisfaction, and productivity. Employee recognition tools offer many ways to properly and individually reward employees. For one, they improve the process with personalization, which establishes a trusting relationship between employees and management. A healthy company culture cannot exist without a reliable and accurate reward system.

Employee Recognition Software Deployment Options

In the employee recognition software market, we witness three main deployment types.

Desktop Application

One deployment option is the desktop application. By choosing employee recognition software with a desktop application, you can access the full service through a computer program.

Mobile Application

To boost accessibility, you can choose an employee recognition tool with a mobile application. This software type allows access via any compatible mobile device.

Software As A Service/Cloud

Many employee recognition tools are hosted on the cloud. With this option, you can access the full service without downloading the software on your device since everything is hosted on a remote server. In this case, the vendor is responsible for everything related to system maintenance. For this reason, they tend to be more secure, but they are often not customizable.

Which Businesses Can Leverage Employee Recognition Software?

Almost all companies have employees, many of which could face issues that can be solved with employee recognition platforms. In this section, we list several examples of companies that can utilize this software.

Academic

Recognizing employees' efforts in the academic sector can be challenging. As in any other industry with employees, issues affecting employee morale must be solved to keep operations smooth. Therefore, it is important to choose the right employee recognition software for academic use to increase productivity and create a rewarding culture for your academic staff.

Freelancers

We have discussed the benefits of employee recognition in companies but have not touched base on another potential buyer: freelancers. It is vital to look for the right employee recognition tool for freelancers to streamline reward-related operations and boost productivity. Freelancing HR teams can also make use of such tools to manage their personnel.

Large Enterprises (>10,000)

The "big fish" in the employee recognition market are large enterprises. In these settings, the issues stemming from a lack of appreciation are more pronounced. As a general rule, the larger the staff, the harder it is to keep it content. Employee recognition platforms for large enterprises come to the rescue to help companies build a startup-like environment despite their size. As a result, employees feel seen for their contribution and increase their productivity. Eventually, this may also solve other HR problems, such as low retention rates.

Nonprofits

Nonprofit organizations can also make full use of employee recognition systems. Retention rates differentiate these organizations from large enterprises, as nonprofit workers are often volunteers, meaning that compensation is not part of the deal. Employee recognition tools for nonprofit organizations offer other reward types that can help their clients retain their employees and increase their morale.

Public Administration

The public sector suffers the most from a lack of employee recognition. Employees in this area often feel unappreciated, and, in fact, the lack of recognition leads them to become less productive. To tackle this problem, employee recognition software for public administration offers its services to reward employees for their hard work and motivate them to go the extra mile.

Small/Medium Businesses

Often, small/medium-sized businesses lack HR know-how and don't utilize tried-and-tested methods to reward their employees. This can have both a positive and negative effect. The positive is that, when it happens, recognition is more personal and meaningful. The negative is that management often misses the unique chance to reward employees. Employee recognition tools for small businesses are tailored to such needs and focus on boosting employee productivity when necessary.

Pricing Models For Employee Recognition Software

There are four primary pricing models for employee recognition software. Let's examine them below.

Free

There are many free employee recognition software options on the market. This model typically offers the core software functionality for free but requires a fee to unlock access to advanced features.

Free Trial

The free trial pricing model differs from the free model discussed above. The main difference is that employee recognition software with a free trial offers the full software for free but for a specific period of time. When that time passes, you will be required to pay a fee in order to continue using the software.

One-Time Purchase License

Employee recognition tools with a one-time purchase license require a one-time payment, meaning you do not have to worry about future payments to continue using the software.

Subscription

In the market, there are also many employee recognition tools with subscriptions. With this model, you can use the full service by paying on a monthly or yearly basis.

List Of Licensing Options For Employee Recognition Software

In this section, we list the three main licensing options for employee recognition software. Check them all out and pick the right one for your company.

Free

There are plenty of free licensing employee recognition software examples in the industry. As the name indicates, this licensing option does not require payment. Still, it might not be ideal for companies without a dedicated development department because it rarely involves proper customer support.

Open-Source

This licensing option is the go-to for businesses that have a dedicated development team. Employee recognition software with open-source licensing is hosted online and offers full access to the code. This allows for customizing the software to address the specific needs of each company.

Paid

For large enterprises, a paid licensing option is the ideal solution. It is the most commonly used pay-to-use model. Generally speaking, employee recognition software with paid licensing offers the full service in exchange for monthly or yearly payments and usually includes full customer support.

Who Uses Employee Recognition Software?

Any company or enterprise that wants to keep employee morale high can use employee recognition software. Potential users may vary from startups that want to establish a solid workplace culture from the get-go to mid-sized companies that aim to maintain the engagement and productivity of their employees at a high level. Last but not least, there are large enterprises that can utilize employee recognition tools to manage diverse teams and unlock their potential.

In addition, HR departments and managers can utilize such tools to manage smaller teams. This can help them increase retention rates and build inclusive and trusting relationships with their employees.

Trends In Employee Recognition Platforms For 2024

Here we explore some of the trends in the employee recognition market that capture the attention of potential buyers.

Advanced Automation For Recognition Activities

An important trend in the employee recognition industry is automated recognition activities, as more and more vendors implement AI and Machine Learning to automate the recognition process. With this technology, recognition becomes faster and more accurate since AI considers all available real-time data. This feature increases employee engagement and boosts workforce morale.

Customizable Recognition Programs

Another emerging trend in the employee recognition market is customizable recognition. This trend allows companies to tailor the tools to their specific needs, thus helping them align the program's use with their working culture, objectives, and values. From a practical perspective, this ensures flexibility in recognition capabilities, personalized employee rewards, and performance-based recognition.

Enhanced Employee Engagement Through Gamification

Gamification in employee recognition is another popular feature. As a potential buyer, you will come across companies that implement gaming elements in the recognition process. These elements can be badges, points, leaderboards, and challenges that increase employee engagement. This little touch of competition brings enthusiasm to the workforce, which thrives on bringing out the best version of themselves.

Predictive Analytics For Employee Recognition

Most employee recognition tools offer access to real-time data, which is extremely useful in predictive analytics. This is why it is becoming increasingly important for a vendor to include this feature in their services. Predictive analytics use historical data to identify patterns and assist in building an accurate recognition strategy, relieving the HR department, which can rest assured that employees are rewarded for their contributions.

Considerations When Purchasing Employee Recognition Software

Collaborating with an employee recognition software vendor can be a huge step, so several factors should be taken into account before making a decision.

What Problem Are You Trying To Solve?

Every collaboration with external partners aims to solve a problem or improve current processes. Choosing the right employee recognition tool is no different. First, you need to take a step back and analyze the problem you are trying to solve with the tool.

What Other Tools Does It Need To Work With?

Nowadays, companies use numerous tools for their day-to-day operations. And it is extremely important that these tools be compatible. When looking for the right employee recognition platform, make sure that it is compatible with the software you already use to ensure a smooth transition.

What Outcomes Are Important?

Not all vendors offer the same services. In the employee recognition software market, each competitor has multiple strong points. Understand your company's needs, see which outcome is most beneficial for your business, and pick the right match.

How Would It Work Within Your Organization?

Every company is unique in terms of needs, goals, culture, and size. Therefore, make a predictive analysis of how the employee recognition software would work in your business. If you can picture a bright future, go for it.

Employee Recognition Ideas

Next, we will explore some general employee appreciation ideas that have proven effective in the industry. These can be applied in any company, regardless of size or sector.

Peer Recognition

Peer recognition is crucial for creating a rewarding work environment. In such a workplace, employees are motivated to acknowledge and reward their colleagues' efforts. This enhances collaboration, teamwork, and productivity of all departments. Simultaneously, it boosts employee morale and builds a unique working culture.

Spot Awards

Instant rewards can be highly beneficial for work culture. Also known as "spot awards," they can take any form depending on the organization, goal achievement, and budget. Some examples are extra time off, gift cards, or monetary bonuses. These rewards increase productivity by reassuring employees that they will be rewarded for their efforts. It is a solid way to establish a healthy working culture.

Employee Of The Month/Year

In the movies, we sometimes see "Employee of the Month" or "Employee of the Year" posters on office walls. In fact, several companies still utilize this tactic to reward their employees. It creates healthy competition in the workplace, and every employee does their best in order to be recognized.

Personalized Rewards

An issue you often hear about in large enterprises is that employees feel like they are not being seen. They worry that managers and HR see them only as numbers or means to achieve company goals. This is why personalized rewards are important, especially in companies with a large number of employees. Personalized recognition can be anything as long as it is based on the employee's personality. It will make employees feel valued and increase morale but also create a trusting bond between management and employees.

Work Anniversary Celebrations

Everyone loves work anniversary celebrations! They are a healthy way to sit back and retrospectively think of what you have achieved so far and how you have changed. Work anniversaries should remind employees of their uniqueness and contribution to company values, as well as reinforce a feeling of belonging in a tight-knit team where every positive outcome is appreciated.

Streamline Employee Recognition In Your Organization

Streamlining employee recognition ensures seamless tracking and rewarding of your employees' accomplishments. To achieve it, it's important to integrate the right employee recognition software and align it with the existing tools used by HR and management. Last but not least, remember that setting fair and transparent recognition criteria can go a long way in increasing the level of trust in the workplace.

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